China’s manufacturing PMI missed expectations, coming in at 50.8 rather than 51.1.
This is also down from September’s read of 51.2.
Remember that any number lower than 50 in this metric suggests a contracting economy.
So this is bad.
What people watching the China slow down have been hoping for is some consistancy here.
In August PMI got walloped along with a whole host of other economic indicators. That was a warning to the government that China’s economic landing was getting rough, and so they responded with some capital injections — nothing major — to keep cash moving through the economy as demand slowed.
In September, numbers came in a little rosier. There was a bit of a sigh of relief.
This October PMI number will have everyone on edge again.